Manila gets Jakarta’s ‘assurance’ on coal
The Philippines has secured an “assurance” on continued availability of coal supply from Indonesia, the local market’s top source of imported coal, as Jakarta’s new export rules may threaten Filipinos’ power supply, according to the Department of Energy (DOE).
The DOE said on Friday that key officials from the agency, led by its Sec. Sharon Garin, flew to Jakarta to hold high-level meetings with Indonesia’s Coordinating Ministry for Economic Affairs and the Ministry of Energy and Mineral Resources.
The discussions sought regulatory clarity on Indonesia’s export guidelines, which aimed to enhance regulation on coal exports.
The Philippines’ power generation mix remains dominated by coal, despite the government’s aggressive push for more renewable energy facilities.
DOE data show that the Philippines imported 28.86 million metric tons (MMT) of coal in 2020, 31.43 MMT in 2021, 32.91 MMT in 2022, 35.53 MMT in 2023 and 39.87 MMT in 2024.
Garin said the Philippines is 95 percent dependent on imported coal, with 99 percent of cargoes coming from Indonesia.
“So, it’s really dependent on Indonesian coal. That will have an impact on our electricity, on our power supply,” she told reporters.
But the DOE said counterparts in Indonesia “recognized the importance of ensuring stable supply of coal to its partner economies who rely heavily on coal for power generation and other industrial uses…”
The development, Indonesian officials said, was also not meant to disrupt supply.
“Their plan is that they’re issuing the guidelines in a few weeks so that we’ll have more clarity and also understand the impact or what will be implemented in the first quarter of next year. So at least we’ll have time to prepare if any major changes happen,” Garin said.
The energy chief also said the Philippine government had asked Indonesia to honor existing contracts, particularly the long-term ones.
“Hopefully they maintain, traditionally, whatever the terms we wish to have,” Garin said, noting that the transaction is government-to-private procurement.
“But we made an offer—if they need (the Philippine) government to play a bigger role in the importation, then we’re willing also,” she added.
